Nearly One-Third of Homeowners Have No Mortgage

mortgage approvalA lot less people have mortgages than you might think, and not all of them are long-time homeowners, either.
According to Zillow, one-third of all homeowners are without a mortgage, and not surprisingly, a majority of these homeowners are of retirement age. There is also a high number of mortgage-free young homeowners, as 34.5 percent of all homeowners aged 20 to24 own their home outright. A majority of these young homeowners live in more affordable parts of the country, such as North Carolina and Texas.
As for the older population, 77.6 percent of homeowners aged 85 and older own their homes outright, while 62.7 percent of homeowners aged 74 to 84 currently don’t have a mortgage. Many aging homeowners feel that paying off their mortgage early can help them save for retirement in a somewhat uncertain economy.
While buying a house outright can be quite expensive, it comes with some advantages such as not having to worry about a credit check or dealing with long-term interest rates. Buying a house with all cash also means that you can often negotiate a better deal with the seller.
In Cook County, 26 percent of homeowners are without a mortgage. In DuPage County, 23 percent of homeowners are without a mortgage, and in nearby Kane County, 19 percent of homeowners own Chicago real estate outright.
For a further breakdown of mortgage-less homeowners by state, check out the Zillow Free and Clear Home Ownership Map.